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Segment Information
 12 Months Ended
May 31, 2016
Segment Information
9. Segment Information

The Company has two reportable segments: Food Safety and Animal Safety. The Food Safety segment is primarily engaged in the development, production and marketing of diagnostic test kits and related products used by food producers and processors to detect harmful natural toxins, foodborne bacteria, allergens and levels of general sanitation. The Animal Safety segment is primarily engaged in the development, production and marketing of products dedicated to animal safety, including a complete line of consumable products marketed to veterinarians and animal health product distributors; this segment also provides genomic identification and related interpretive bioinformatic services. Additionally, the Animal Safety segment produces and markets rodenticides, disinfectants, and insecticides to assist in control of rodents, insects and disease in and around agricultural, food production and other facilities.

These segments are managed separately because they represent strategic business units that offer different products and require different marketing strategies. The Company evaluates performance based on total sales and operating income of the respective segments. The accounting policies of each of the segments are the same as those described in Note 1.

Segment information is as follows:

 

(in thousands)    Food Safety      Animal Safety      Corporate and
Eliminations (1)		     Total  

Fiscal 2016

           

Product revenues to external customers

    $ 133,685       $ 139,885       $ 0      $ 273,570   

Service revenues to external customers

      12,156         35,549         0        47,705   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total revenues to external customers

      145,841         175,434         0        321,275   

Operating income (loss)

      29,185         30,777         (3,576 )      56,386   

Depreciation and amortization

      5,745         6,795         0        12,540   

Total assets

      142,078         216,599         93,038        451,715   

Expenditures for long-lived assets

      9,192         5,030         0        14,222   

Fiscal 2015

           

Product revenues to external customers

    $ 119,990       $ 123,919       $ 0      $ 243,909   

Service revenues to external customers

      11,489         27,676         0        39,165   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total revenues to external customers

      131,479         151,595         0        283,074   

Operating income (loss)

      30,265         26,034         (3,181 )      53,118   

Depreciation and amortization

      4,620         6,029         0        10,649   

Total assets

      110,655         179,082         102,444        392,181   

Expenditures for long-lived assets

      4,216         5,403         0        9,619   

Fiscal 2014

           

Product revenues to external customers

    $ 107,959       $ 108,189       $ 0      $ 216,148   

Service revenues to external customers

      8,331         22,926         0        31,257   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total revenues to external customers

      116,290         131,115         0        247,405   

Operating income (loss)

      28,009         18,571         (3,189 )      43,391   

Depreciation and amortization

      4,181         4,999         0        9,180   

Total assets

      105,607         173,643         66,051        345,301   

Expenditures for long-lived assets

      5,999         5,544         0        11,543   

 

(1) Includes corporate assets, including cash and cash equivalents, marketable securities, current and deferred tax accounts, and overhead expenses not allocated to specific business segments. Also includes the elimination of intersegment transactions and noncontrolling interests.

Revenues to customers located outside the United States amounted to $107,680,000 or 33.5% of consolidated revenues in fiscal 2016, $103,867,000 or 36.7% in fiscal 2015 and $96,111,000 or 38.8% in fiscal 2014 and were derived primarily in various countries throughout Europe, Canada, South and Central America and Asia. No customer represented revenues in excess of 10% of consolidated net sales in any of the three years. The United States based operations represent 89% of the Company’s long-lived assets as of May 31, 2016 and 95% as May 31, 2015.